Concall transcriptMay 2026
May 2026 · Transcript
Source: Nse
Gayatri Rubbers And Chemicals Ltd. (GRCL)
SME CapIndustrials stocks · SME cap · NSE
Gayatri Rubbers and Chemicals Ltd. (GRCL) is a Faridabad-based manufacturer of high-quality engineering rubber solutions for India's infrastructure. Specializing in rubber profiles, compounds, and sponge rubber components, GRCL serves the Automobile, Architectural, Industrial, and Railway sectors, with a strategic focus on high-margin, specialized products.
Data qualityFresh enough for analysisQuote updated 19 Oct, 03:31 pm ISTDetails
Quote19 Oct, 03:31 pm IST
Base fundamentals18 Oct 2026 · screener
Latest result03 May, 01:11 am IST
Score20 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags24 Apr 2026
Coverage13/14 · 93%
Valuation2026-07-20 · Rf 6.8% · Industrials P/E 26.2 (n=537)
Technical timing lens
Trend score and candlestick chart
70Bullishfull bull SMA stack · SMA20 +3.3% / mo · MACD + · near 52W high
Stock trend: 84
Sector RS: 50
Sector 3M: -6.3% vs Nifty 500 -5.6%
Industrials FPI tailwindNot confirmed
Latest mapped FPI equity flow was not positive. View sector evidence
Technical chart
GRCLD candles · FIT view+51.3%Latest close ₹590.00 on 2026-10-19
Bar
+0.0%
RSI
56
MACD hist
1.44
52W pos
88%
2026-10-19O ₹590.00H ₹590.00L ₹590.00C ₹590.00Vol 750 sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
GRCLNifty India ManufacturingNifty 500
- GRCL
- -2.9%
- Nifty 500
- -5.6%
- Nifty India Manufacturing
- -6.3%
- Vs Nifty 500
- +2.8 pp
Chart stats
19 Oct 2026- From 52W high
- -6.2%
- 52W range position
- 88%
- ATR (14)
- 2.4%
- Volume vs 20D
- 0.54x
- Avg traded value
- ₹0.1 Cr
- 20D price channel
- ₹546 - ₹600
₹629.2
₹306.7 - ₹629.2
₹14.3
Latest completed session
20-session average
44.5% annualized volatility
Research snapshot
What the evidence says now
Mixed fundamentals, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
Weak U-Score but strong trend: momentum may be ahead of fundamentals.
Suggested next step
Momentum only
Trend is strong but fundamentals do not support a clean investment thesis.
U-Score
Legacy · FAIR VALUE54
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Excellent100
Revenue +79.6% · PAT +210.5% YoY
Technical
Bullish70
Price trend and sector-relative-strength timing.
Valuation
Legacy model-54.1%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence77
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 31 Mar 2026
Excellent · 100/100Rev +80% YoY · PAT +211% YoY · margin expansion · +41% QoQ · operating leverage
Filed 31 Mar 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹24.5 Cr | +79.6% | +41.4% |
| EBITDA | ₹4.8 Cr | NDF | +20.6% |
| Operating margin | 19.6% | NDF | -340 bps |
| PAT | ₹3 Cr | +210.5% | +12.2% |
| PAT margin | 12.1% | NDF | -314 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 61.30
- P/B
- 17.41
- EV/EBITDA
- 37.00
- Market Cap
- 342.00Cr
Profitability
- ROE
- 33.10%
- ROCE
- 37.90%
- ROA
- 17.53%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 25.87%
- EPS 5Y
- 78.55%
- Revenue 3Y
- 23.00%
- EPS 3Y
- 83.00%
Balance Sheet
- Debt/Equity
- 0.35
- Interest Coverage
- 13.15×
- Altman Z
- 9.06
- Book Value
- 34.30
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 1/5
- OCF
- 0.16 Cr
- EPS TTM
- 9.74
Shareholding
- Promoter Hold
- 74.03%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 90%
Financial History
Updated 20/10/2026
Revenue
₹ CrLatest: 24.5+41.4% vs prev
Net Profit
₹ CrLatest: 3.0+12.2% vs prev
ROE is shown only in the Annual view — quarterly equity data isn't published.
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Bullish setupTrend is constructive — long-term trend unclear. RSI 56.
- SMA20 rising (~3.2% over last month) — short-term momentum positive.
- RSI(14) at 56 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 6% off 52W high · 92% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
87
RS percentile
Stage 2 UptrendEstablished S2
1M return
+2.2%
3M return
+1.1%
6M return
+55.7%
1Y return
+39.8%
RS 1D
-1
RS 20D
+12
Sector rank
#2
Industry rank
#4
Stage evidence
- Price is 17.3% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +6.0%.
- Both 3-month and 6-month returns are positive.
50-DMA
price above
200-DMA
price above
S2 entered
14 May 2026
S2 age
95 trading sessions
Sector
leading
Industry
leading
Relative-strength line vs Nifty 500 (base 100)
209 observations
19 Oct 2026Value 164.51-0.10%
RS vs Nifty 500165
Valuation & peers
U-Score 54 · legacy U-Score band FAIR VALUE · valuation evidence and comparable companies
Valuation & peers
U-Score 54 · legacy U-Score band FAIR VALUE · valuation evidence and comparable companies
Premium Compounder
Fundamental score breakdown
U band · FAIR VALUEValuation0/30
Growth22/25
Quality20/20
Balance Sheet10/15
Cash Flow1/10
Piotroski
8/9 (+5)
Penalties
-4
Raw sum
54
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
54/100 · legacy band FAIR VALUE
Positive drivers
- Piotroski is strong at 8/9.
- Quality contributes 20/20 to the score.
- Growth contributes 22/25 to the score.
Main drags
- Penalty bucket subtracts 4 points.
- Fair-value margin of safety is negative at -54.1%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
Sector valuation model
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Primary lens
Mid-cycle PE/EV/EBITDA using multi-year average margins or earnings.
Secondary checks
Current margin versus 5-year average, balance sheet strength, commodity cycle.
Main risk check
A low trailing PE may mean peak-cycle earnings, not true cheapness.
PE
61.3
PB
17.4
EV/EBITDA
37.0
ROE
33.1%
ROCE
37.9%
FCF Yield
—
Debt/Equity
0.3
MoS
-54.1%
Cyclical/value-trap warning
This sector can look cheap when profits are temporarily high. Check mid-cycle margins/earnings before relying on trailing PE.
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 20 Oct 2026
v4.3-runtime-valuation
Final score
54
Previous: 54
Legacy U-Score band
FAIR VALUE
Previous: FAIR VALUE
Margin of safety
-54.1%
Previous: -54.1%
Score history
12 stored score snapshots. Latest stored move: +0 points.
20 Oct 2026
v4.3-runtime-valuation
55
55
55
55
55
55
55
55
55
54
54
54
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹86.7
-580.5% MoS
Growth-justified P/E
39.3
Growth-justified Value
₹382.78
-54.1% MoS
PEG
0.76
Comparable companies
Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
RUBFILA
Small
Rubfila International Limited
Rubber Products
match 55
40
13.3
8.8%
-152%
WATCHLIST
LRRPL
SME
Lead Reclaim And Rubber Products Ltd.
Rubber Products
match 55
48
25.6
18.5%
+45%
FAIR VALUE
PENTAGON
SME
Pentagon Rubber Ltd.
Rubber Products
match 51
16
35.8
5.6%
+19%
OVERVALUED
ELGIRUBCO
Small
Elgi Rubber Company Limited
Rubber Products
match 49
4
—
-67.5%
—
OVERVALUED
TINNARUBR
Small
Tinna Rubber and Infrastructure Limited
Rubber Products
match 38
58
27.2
22.1%
+33%
FAIR VALUE
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis intactReviewed 2026-08-17T07:27:41.808Z
Management commentary snapshot
GRCL reported strong FY26 results, with Total Income up 30.8% YoY to 41.82 Cr and PAT nearly doubling to 5.59 Cr. EBITDA margins expanded significantly to 21.11%, reflecting robust operational leverage and a strategic pivot towards high-barrier engineering solutions.
GRCL's strategic pivot to high-margin engineering solutions is yielding strong financial results, with significant margin expansion. Growth drivers like railway modernization and smart meters offer substantial addressable markets. However, execution on new product lines and export entry, alongside working capital management, will be key to sustaining momentum.
Current business mix
Revenue by vertical
Latest issuer-disclosed distribution across 3 reported categories.
Railways55.0%
Industrial20.0%
Other (Architectural, Automotive)25.0%
Growth engines
Railway Modernization
Deepening partnership with Indian Railways via Vande Bharat/Amrit Bharat initiatives, with new product launches like fire-retardant Silicon Mobile holders.
Smart Meter Revolution
Monopoly supplier of critical components to industry leaders, targeting 250 million smart meters nationwide by 2030.
New Product Development
R&D for EU Food-grade rubber seals, upcoming Bridge Pads, Railway Pads, Pipes, and Solar T-shaped rubber production from FY27.
Export Entry
Plans to enter exports from 2027, leveraging the India-EU FTA which eliminates the 6.5% tariff for plastic/rubber products.
Capacity and execution
Plant 1 Utilization
Plant 1 is operating at 80% utilization, indicating significant operational leverage to absorb further demand growth.
Plant 2 Commissioning & Utilization
Plant 2, established with 8-10 Cr CapEx, is currently at 30% utilization, dedicated to specialized, high-value railway products.
Bridge Pads Market Entry
Plans to enter the Bridge Pads market within the next 6-8 months, utilizing Plant 1's existing capacity and EPDM rubber expertise.
Solar T-Shaped Rubber Production
Production of T-Shaped Rubber for the solar industry is planned to start from FY27.
Tailwinds
RDSS Mandate for Smart Meters
Government targets 250 million smart meters nationwide, with 75% yet to be installed, significantly scaling the domestic addressable market.
India-EU Free Trade Agreement (FTA)
The FTA eliminates the 6.5% tariff for plastic/rubber products, supporting the company's planned export entry from 2027.
Railway Modernization & Expansion
Massive government push via Amrit Bharat & Vande Bharat schemes and aggressive track expansion (3,000+ km/year) drive demand for railway components.
Import Substitution Policy
Active government policy favors domestic, RDSO-certified suppliers, strengthening GRCL's position in the railway segment.
Risk radar
Execution Risk for New Verticals
Success in upcoming verticals like Bridge Pads, Railway Pads, and Solar T-shaped rubber depends on timely R&D, approvals, and effective market penetration.
Working Capital Management
Inventories ( 15.32 Cr) and trade receivables ( 9.39 Cr) have grown significantly in FY26, requiring careful management to avoid liquidity strain.
Reliance on Government Contracts
Significant revenue from Indian Railways and smart meter projects exposes the company to tender cycles, policy changes, and payment terms.
Competition in New Markets
While existing railway business has high barriers, new segments like railway pads face a concentrated market with 15-20 qualified players.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare YOY
The document presents annual financial data (FY24, FY25, FY26), making year-over-year comparison the most appropriate for assessing financial performance and growth trends.
Sector KPIs management disclosed
EBITDA Margin
EBITDA margins expanded to 21.11% in FY26, up from 14.82% in FY25.
PAT Margin
PAT margins increased to 13.36% in FY26, from 8.91% in FY25.
Plant 1 Utilization
Plant 1 is operating at 80% utilization, with capacity to absorb further demand growth.
Plant 2 Utilization
Plant 2 is currently at 30% utilization, with expected annual revenue of 25-30 Cr for FY27 and 60 Cr at peak.
Management forward view
FY27/FY28 Revenue Targets
Management aims for 55 Cr revenue by FY27 (~31% CAGR) and 70-80 Cr by FY28 (~33% CAGR).
FY27/FY28 PAT Targets
Projects PAT of 9 Cr by FY27 (~77% CAGR) and 14 Cr by FY28 (~70% CAGR).
Strategic Pillars
Focus on maximizing core (driving utilization from 60% to 90-95%), expanding into adjacencies, and innovating for the future.
Management Stake Increase
Management increased its stake to 74.06%, reflecting conviction in the company's growth trajectory.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Revenue & PAT Growth | FY26 Total Income 41.82 Cr, PAT 5.59 Cr. | Achievement of stated FY27/FY28 revenue and PAT targets. |
| Plant Utilization | Plant 1 at 80%, Plant 2 at 30%. | Ramp-up of Plant 2 utilization and overall utilization towards 90-95%. |
| New Product Approvals/Launches | R&D for pipes, bridge pads entry in 6-8 months, solar T-shaped rubber from FY27. | Timely approvals and successful commercialization of new products and export entry. |
| Working Capital Cycle | Inventories 15.32 Cr, Trade Receivables 9.39 Cr in FY26. | Efficient management of inventory and receivables to support growth without straining cash flow. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
77Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 83rd percentile of the scored universe and 83rd percentile within Industrials. Main check: cash conversion is weak at 43/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 05 Sept 2026
management-trust-v1
3 docs text-extracted · 1 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
83rd percentile
overall median 67 · Industrials: 83rd pctile, median 68 · SME: 97th pctile, median 64
Evidence depth
Financial-only
3 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Can support position sizing if valuation and trend also agree.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
86
strong · holding, pledge, alignment
Cash flow
43
weak · profit to cash conversion
Balance sheet
89
strong · leverage and solvency
Discipline
98
strong · capital discipline
Results
77
strong · quarterly consistency
Trust positives
- ▸Promoter holding is 74%.
- ▸Promoter pledge is zero.
- ▸ROCE is 39.5%.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Only 1 years of positive FCF.
- ▸OPM spread across recent quarters is 16.2%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Gayatri Rubbers And Chemicals Ltd.
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Investor presentationMay 2026
May 2026 · PPT
Source: Nse
Annual report
Annual Report 2026
Source: Nse
Annual report
Annual Report 2025
Source: Nse
Investor presentationNov 2024
Nov 2024 · PPT
Source: Nse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.